Challenger Annuities

Challenger Life Company Limited is Australia's leading provider of annuities, serving a client base of approximately 60,000 and issuing more annuities each month than any other life insurance company.

In 2008 it won overall Annuity Provider of the Year as well as the Short-term Annuity and Long-term Annuity product categories*.

A Challenger annuity is a simple financial product.

Investors receive an attractive, guaranteed income stream for a defined period of their choosing, from 1 to 30 years. Income payments can be made monthly, quarterly or yearly, with the option of inflation protection. Investors can receive their capital back in a lump sum at the end of the term or progressively with their interest over the term.

While an annuity is structured to be held to maturity, it also provides for early withdrawals where an investor's circumstances have changed.

A Challenger annuity carries no management or other product fees. Challenger invests the premium paid by the investor, as well as shareholders' equity and other capital, and retains any residual return over and above the returns it has promised to pay.

Annuitants bear no investment risk at all which means that regardless of how investment markets perform, Challenger's annuities will reliably deliver on the capital and income promises made to investors.

The inclusion of an annuity in a retirement income portfolio helps protect super from losses and management fees. With the help of a good financial adviser, a portfolio built with a combination of annuities and growth assets can also help manage longevity risk; that is, the risk that investors will outlive retirement savings.

The returns paid by Challenger annuities, and 100% of an investor's capital, are guaranteed by Challenger Life Company Limited, which is regulated by the Australian Prudential Regulation Authority and has been rated 'A' by Standard & Poor's.

Challenger's annuities are accessible through an individual policy tailored under the Guaranteed Income Plan, or via the Guaranteed Income Fund which invests into underlying annuities and is available on platforms.

Find out more about Challenger's annuity products below:

Product no longer available to new investors

  • Challenger Income Choice Annuities

For more information contact your financial adviser or call the Challenger Investor Services team on 13 35 66.

* Plan for Life Actuaries and Researchers